PEKING (dpa-AFX) - NetEase.com Inc. (NTES), a China-based provider of online game and web advertising services, on Wednesday reported a 59 percent increase in profit for the second quarter on strong demand for its online games.
The company's net income for the second quarter was 772.50 million yuan or $119.52 million, up from 485.67 million yuan in the year-ago period.
On a per share basis, earnings increased to 0.24 yuan or $0.04 from 0.15 yuan in the year-ago period. On a per American depositary share basis, earnings rose to 5.90 yuan or $0.91 from 3.73 yuan or $0.58 in the year-ago period.
On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $0.78 per share for the quarter. Analysts' estimates typically exclude special items.
The latest quarter's results include a net foreign exchange loss of 3 million yuan, compared to foreign exchange loss of 67.8 million yuan in the same period last year.
Revenues for the quarter grew 32 percent to 1.78 billion yuan or $275.1 million from 1.35 billion yuan in the prior-year period. Analysts had a consensus revenue estimate for the quarter of $246.21 million.
Online games revenue increased 34 percent from last year to 1.58 billion yuan, mainly as a result of the growth in the company's self-developed games, including Fantasy Westward Journey, Ghost, Westward Journey Online II, Tianxia II and Heroes of Tang Dynasty, along with continued revenue growth from World of Warcraft.
Advertising services revenue grew 16 percent to 169.64 million yuan, while wireless value-added service revenues surged 54 percent to 30.67 million yuan.
Looking ahead, William Ding, Chief Executive Officer and Director of NetEase, said, 'During the second half of the year, we expect to launch expansion packs for Fantasy Westward Journey, Westward Journey Online III, and Legend of Westward Journey, which we are renaming, 'Warsong of Westward Journey.' In addition, we are preparing to release a comprehensive upgrade of Tianxia II and will continue to enhance the content of Ghost prior to the full-scale closed beta testing planned to commence in the second half of this year.'
NTES closed Wednesday's regular trade at $49.30, up $0.35 or 0.72 percent on a volume of 1.53 million shares. In after hours, the stock further gained $2.05 or 4.16 percent to $51.35.
Copyright RTT News/dpa-AFX
